A Case Study in Crisis Management in the Digital Transformation Era: Wells Fargo & Company

Abstract

This case study deals with one of the biggest financial scandals in the new millennium among the banking sector in which the banking giant, Wells Fargo & Company (WFC), has opened millions of accounts without acknowledging its customers. It has been charging various fees without the consent of the company's existing clients, and it has involved many people with the personal credit crisis. On the contrary, senior management team was rewarded enormously for the rocketing profits resulting from the phony accounts numerous fees and elevated the bank's share price in a relatively short time. After the accounts scandal was unveiled by its employees and reported by the media, Wells Fargo's reputation was in great danger. While reputation is vital for almost all companies, it is especially essential for the financial services industry, where reputation is a deep-rooted culture. Crisis management strategies in the new era of digital transformation for companies like Wells Fargo as well as other financial services companies are crucial. Risk management is essential in today's business world, but crisis management as contingent plans cannot be ignored since events are not always going as many think they would be.